TheStreetBullFinder
Deciding what investing strategy to choose, type of analyses to perform and what securities to buy is not an easy topic and almost anybody you ask would have it's own opinion. It's more of a "religion" than a science... Few things however, are obvious:
1. Regardless whether you are short, medium or long term investor, if you are committing money or capital you expect to gain profitable returns. Since every investment comes with some risk of loss, you need to pay particular attention to protecting your principal... after all, you need "chips" to stay in the "game".
2. Once you have available money to invest, you need to deal with: What, Why, and When to buy. No matter what you decide to buy, a sound recipe (with it's rules) of selection and elimination process has to be in place. How else would you repeat your success and avoid disappointments? Lack of rules makes you engage in gambling without any certainty associated with your actions... Whether you trust your broker, advisor, analytics tool or a secret formula you might have in "your-tool-box" you must have a strict investment policy of your own. Same applies for "exit" strategy, you need one before you get in and it should cover both gains and potential losses.
3. Stock markets are here to stay and they do provide wealth of opportunities. You just have to find right security that suits your investment needs. At any point of time, there are plenty of stocks which enjoy benefits of current market conditions and/or company success and as many that do not...
Our analyses favour simplicity and natural selection by the market itself. In short, while market is bullish with a stock/security we tend to like it as well. We also consider price/volume movements to be the only factual sentiment indicators available to everyone. While balance sheets in theory should also be factual, too many examples prove them to be easily manipulated with potentially deceiving outcomes. The tricky part is deciding how long the market sentiment towards a particular stock will last. TheStreetBullFinder team uses statistics, common sense and few innovative methods ...
| how does it all work |
"The individual investor should act consistently as an investor and not as a speculator. This means.. that he should be able to justify every purchase he makes and each price he pays by impersonal, objective reasoning that satisfies him that he is getting more than his money's worth for his purchase."
~Benjamin Graham
"Wide diversification is only required when investors do not understand what they are doing."
~Warren Buffett
"It has been my experience that competency in mathematics, both in numerical manipulations and in understanding its conceptual foundations, enhances a person's ability to handle the more ambiguous and qualitative relationships that dominate our day-to-day financial decision-making."
~Alan Greenspan
"When I'm bearish and I sell a stock, each sale must be at a lower level than the previous sale. When I am buying, the reverse is true. I must buy on a rising scale. I don’t buy long stocks on a scale down, I buy on a scale up."
~Jesse Livermore